Stocks To Watch With Trade Uncertainty This High – Waitr Holdings Inc. (WTRH), Urban Outfitters Inc. (URBN)

Waitr Holdings Inc. (NASDAQ: WTRH) shares are 1317.70% up in the year-to-date (YTD) period and have moved 2.24% or $0.1 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +1,655.77% lower. Comparatively, the stock is -21.97% down YTD and 79.72% over the trailing 3-month period. If we look at the shorter duration, its week performance is -7.96% and -4.90% over the month.

Analyst Recommendations

On July 09, 2020, Deutsche Bank recommended the WTRH stock is a Hold, while earlier, B. Riley FBR had Initiated the stock as a Buy on July 22, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the WTRH stock is a “Moderate Buy. 0 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $4.57 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $5.95. The forecasts give the Waitr Holdings Inc. stock a price target range of $8.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.80. The two limits represent an upside potential of 42.88% or -20.26%.

Earnings Forecast

For the current year, earnings should grow to an average of $0.2, up 12.60% from -$4 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.03 and $0.07. Wall Street estimates earnings per share to be at an average of $0.2 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 8 over the last 12 months, while SEC filings reveal that there have been 6 insider sales over the same period. Insiders have purchases 117,914 shares while those sold by company executives and officers stand at 334,542. The last 3 months have seen insiders trade a total of 92,301 and 250,000 in purchases and sales respectively.

Meaux Christopher, a Director at the company, sold 45,716 shares worth $0.11 million at $2.30 per share on Jun 03. The Director had earlier sold another 93,517 WTRH shares valued at $0.2 million on Jun 04. The shares were sold at $2.17 per share. Meaux Christopher (Director) sold 35,767 shares at $2.50 per share on Jun 01 for a total of $89418.0 while Meaux Christopher, (Director) sold 75,000 shares on May 29 for $0.19 million with each share fetching $2.50.

Urban Outfitters Inc. (NASDAQ:URBN), on the other hand, is trading around $20.80 with a market cap of $2.03B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $19.17 and spell out a less modest performance – a -8.5% return. Some analysts are even forecasting -$1.3 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Urban Outfitters Inc. (URBN) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

URBN’s operating margin was negative on the trailing 12 months basis, remaining steady at -0.20%, while the operating expenses over the recent quarter were at $211.22 million. This represented a 64.11% of the company’s total revenues which amounted $588.48 million. With this in place, we can see that the company’s diluted EPS declined -$1.41 on the year-over-year period, growing to $0.31 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Oct 2020), the total assets figure advanced to $3.36 billion from $3.32 billion over the previous quarter. Short term investments amounted to $65.12 million while total current assets were at $1.18 billion. The cash flow from operating activities totaled -$59.65 million, significantly lower than the $25.89 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$103.17 million.

Insider activity

Insiders have transacted a total of 17 times at Urban Outfitters Inc. over the last 6 months, with insider purchases undertaken 8 times and accounting for 96,664 shares. Insider sales totaled 41,588 shares over the same period, with these deals completed in 9 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of 40.36M shares after the latest sales, with 0.30% net shares purchased.

Major holders

Insiders own 20.80% of the company shares, while shares held by institutions stand at 75.90% with a share float percentage of 56.59M. Investors are also buoyed by the number of investors in a company, with Urban Outfitters Inc. having a total of 338 institutions that hold shares in the company. The top two institutional holders are Shapiro Capital Management Company, Inc. with over 10.64 million shares worth more than $161.92 million. As of Jun 29, 2020, Shapiro Capital Management Company, Inc. held 10.88% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 7.91 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $120.42 million and represent 8.09% of shares outstanding.